Synopsis : Quick commerce giant Zepto has moved a step closer to its stock market debut after filing an updated DRHP with SEBI. The proposed IPO includes an ₹8,010 crore fresh issue and a major Offer for Sale (OFS), with Nexus Ventures emerging as the largest selling shareholder.
Zepto Files Updated DRHP Ahead of IPO Launch
India's fast-growing quick commerce platform Zepto has filed an updated Draft Red Herring Prospectus (DRHP) with SEBI, bringing its highly anticipated Initial Public Offering (IPO) closer to reality.
The IPO structure includes a fresh issue of equity shares worth up to ₹8,010 crore alongside an Offer for Sale (OFS) of up to 11.35 crore shares by existing investors. The company also retains the option to raise up to ₹1,602 crore through a pre-IPO placement, which could reduce the size of the fresh issue accordingly.
Zepto plans to list its shares on both the NSE and BSE.
Nexus Ventures Leads the OFS
Several early investors are partially monetising their holdings through the OFS component.
| Selling Shareholder | Shares Offered (Up To) |
|---|---|
| Nexus Ventures VI Holdings LLC | 57,357,141 |
| Nexus Ventures VII Holdings LLC | 30,398,907 |
| Razor Ventures Zepto LLC | 9,364,174 |
| Contrary ZEP Holdings LLC | 7,801,378 |
| Kaiser Foundation Hospitals | 4,385,912 |
| Kaiser Permanente Group Trust | 4,159,054 |
Together, the two Nexus Ventures entities plan to sell over 87 million shares, making them the largest participants in the OFS. Meanwhile, Razor Ventures is offloading the highest proportion of its existing stake among the selling shareholders.
How Zepto Plans to Use Fresh Issue Proceeds
Unlike the OFS proceeds, funds raised through the fresh issue will be used for business expansion and growth initiatives.
Key utilisation plans include:
- Expansion of Zepto's dark store network across India
- Addition of approximately 1,904 new dark stores
- Lease rental payments for existing facilities
- Investments in technology and cloud infrastructure
- Brand-building and marketing initiatives
- Strategic acquisitions and inorganic growth opportunities
- General corporate purposes
IPO Allocation Structure
The issue will be launched through the book-building process under SEBI regulations.
The allocation framework includes:
- Minimum 75% reserved for Qualified Institutional Buyers (QIBs)
- Up to 15% allocated to Non-Institutional Investors (NIIs)
- Up to 10% reserved for Retail Individual Investors (RIIs)
- Separate employee reservation portion
Promoters and Lead Managers
Zepto's key promoters include Aadit Palicha and Kaivalya Vohra, who founded the company and transformed it into one of India's largest quick commerce platforms.
The IPO is being managed by a consortium of leading investment banks including:
- Axis Capital
- Morgan Stanley
- Goldman Sachs
- Motilal Oswal Financial Services
- HSBC Securities
- JM Financial
- IIFL Capital Services
KFIN Technologies has been appointed as the registrar to the issue.
What Investors Should Watch
As the IPO process progresses, investors will closely monitor the final valuation, issue pricing, subscription demand, and growth outlook. The combination of a sizeable growth-oriented fresh issue and significant shareholder exits through the OFS will likely remain key discussion points ahead of the public offering.
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